Your connection to the latest in electricity, natural gas, and utilities news.
In this issue:
Transmission
FERC has ‘one shot’ to get regional transmission rule right
The head of a renewable energy advocacy group said that federal regulators are on the brink of making what is potentially one of the most important decisions in recent memory: issuing a final rule on regional transmission planning and cost allocation. The stakes are high, he explained, and the Federal Energy Regulatory Commission has “essentially one shot to get this right.”
DOE issues blueprint to speed, improve grid interconnection process
The Department of Energy unveiled a transmission interconnection blueprint that allows generators to more quickly and efficiently connect to the grid. The road map focuses on four key areas – including creating fast-track interconnection options and improving existing ones – and calls for ensuring equal access to queues. One expert called it a “landmark document.”
High inflation supports case for electricity transmission competition
Federal agencies have determined competition will improve grid reliability and sustainability, lower rates, and boost innovation, according to the head of an advocacy group. He also noted electricity price inflation is 30 percent higher than the Consumer Price Index, due largely to higher transmission costs, and asked, “Will FERC embrace competition to halt the soaring costs?”
FERC
Bill would force FERC to issue rules bringing new resources to grid faster
Two members of Congress introduced a measure that would force the Federal Energy Regulatory Commission to issue rules within 18 months to give generation and storage resources faster, more effective access to the grid. The bill will speed up the “slow and outdated” connection process, one of the authors said, while cutting costs and improving reliability.
National
Report: Climate-related power outages rising in U.S.
A new report found that U.S. power outages are increasing as climate-related extreme weather puts additional burdens on an already stressed grid. It found that in the past 10 years, severe storm outages grew by 74 percent compared to the previous decade. Rains, high winds, tropical cyclones and winter storms were responsible for 80 percent of all outages over the past 20 years.
House panel votes to strike down SEC climate risk disclosure rule
A U.S. House committee voted to strike down the Securities and Exchange Commission’s climate risk disclosure rule. Calling the rule “fatally flawed,” the panel’s chair said it was “costly, complex and against the public good.” Other members charged the SEC “has strayed very far” from its mission and said the rule violates established Supreme Court doctrine.
New policy brief urges industrial electrification with clean power
U.S. manufacturing can keep its strong growth and still cut carbon emissions, according to a new analysis, but only if regulators and policymakers move now to help industry electrify process heating. The analysis said industry will likely be the largest source of greenhouse gas emissions unless new manufacturing spending is paired with rapid deployment of decarbonization solutions.
Study: Energy storage to support grid can boost carbon emissions
A new study argued adding battery storage to the grid can encourage the use of coal over natural gas, boosting carbon emissions. Researchers found that as batteries eased the need for grid reliability services, power generation markets were more likely to shift to coal. They added that storage is still key to the energy transition but warned that the technologies are not inherently green.
Financial
Venture capital spending on solar companies plummets
Venture capitalists invested $406 million in solar firms in the first quarter, down sharply from the $2.1 billion raised during the same period last year. While demand for solar remained strong, high interest rates led investors to look elsewhere, as the segment could appear too risky. Various factors could cause investors to continue avoiding solar in the months to come.
EV, battery projects totaled $2.1B in investments
Spending on electric vehicle and battery projects led the clean energy manufacturing sector in March, totaling $2.1 billion. Seven companies announced major clean energy and research and development plans – all in the EV and battery and storage segments – creating 1,720 jobs. So far this year, South Carolina leads in U.S. clean energy investments followed by Mississippi.
Corporate funding for energy storage skyrockets, rising by 432 percent
Corporate funding for energy storage surged 432 percent in the first quarter of 2024, totaling $11.7 billion – most of it coming from two deals. Whereas inflation and high interest rates have paused investors’ interest in solar, the potential of battery technologies keeps attracting venture capital to storage, signaling that it is critical to the continuing energy transition.
Solar PPAs stabilize but declining prices not expected to continue
Solar power purchase agreement prices stabilized in the past quarter after costs had risen for several months. The average for North American solar PPAs dropped 1.4 percent, while wind PPA prices climbed 2.4 percent. By comparison, wind is up 20.3 percent year over year and solar has grown 4.9 percent since early 2023. But solar PPA prices are not expected to keep falling.
The States
Michigan moves to become a top state for nuclear generation
Michigan lawmakers have introduced a package of bills that could return nuclear power to the state. The measures would remove barriers to creating small modular reactors, establish education grants and scholarships, and create a tax credit as an incentive for research and development of nuclear reactors. The aim is to make Michigan a “top five state” for nuclear.
New England states seek U.S. funding for large-scale clean energy, grid projects
A group of New England states announced they have submitted two “compelling” applications for federal funds aimed at supporting offshore wind, battery storage and enhanced interregional transfer capacity. One state official said securing the funds “would be transformational for the development of renewable energy and grid resiliency” throughout the region.
NYISO launches first DER integration program in nation
In a move designed to address Federal Energy Regulatory Commission mandates, New York Independent System Operator launched a first-in-the-nation program to integrate aggregations of distributed energy resources into wholesale markets. But the rules require that participating DER have to be at least 10 kilowatts, a threshold that has generated some controversy.
PJM
PJM is working to navigate energy transition challenges
PJM has undertaken a process aimed at dealing with the challenges of maintaining a reliable power system while navigating the energy transition toward an increased share of renewable generation. The RTO expects to process a significant amount of capacity from renewables or storage in the coming years, but hurdles to ensuring that those projects generate power remain.
Companies
Hitachi to spend $1.5B to ramp up production of transformers
Hitachi Energy will spend $1.5 billion to produce more transformers in support of worldwide electrification efforts. The investment will enable the company to gradually ramp up its global transformer capacity by 2027 and follows an announcement made last year that it will spend $3 billion in transformer manufacturing.